Question

Awanita Enterprises sells computer flash drives for $ 2.41 per unit. Unit variable cost is $ 0.07. The breakeven point in units is 3 comma 400​, and expected sales in units are 4 comma 500. What is the margin of safety in​ dollars

Answer 1

Margin of safety= $2,651

Step-by-step explanation:

Giving the following information:

Awanita Enterprises sells computer flash drives for $ 2.41 per unit. Unit variable cost is $ 0.07. The breakeven point in units is 3,400​, and expected sales in units are 4,500

Margin of safety= 4,500*2.41 - 3,400*2.41= $2,651